New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-04-09
THE INSURANCE COMBINATION

OF THE 100 COMPANIES IA HAVE APPROVED THE
NEW ARRANGEMENT.
The fire insurance companies and brokers are rather
gleeful out OF the 100 companies In this city ana
Brooklyn. Ia have approved the new arrangement OF
rating risks which is simply the method that prevailed
until last October under the old Tariff Association f. X
Kennedy said yesterday that the prospects were exceed
lncly encouraging. ave all feel" he continued as II
fire had occurred on SIS 100000 risk which We at first
supposed had all burned down and left us out moro
money than could make in the next three years But
later advices report that the fire department was on
hand early and put out the fire. and we are all let out
with ten per cent loss Indeed, 1t Is not too much to
saw that the situation il really better than
before the Williamsburg City pulled ont Of the combine
lion and caused the temporary chaos III Is ihnMfiy
Association upon the lines of which this new one Is
built was formed. Its bepefcent results were appre-
cated by the companies and the brokers' Both saw that
IFS opcraton was really necessity aud they into this
one experiences derived from those years BACK
of them T.. e.. NAN, orr.nc.msr,, in aotsu,r
eve have rated on basis Of 10 per cont commission
the two cities Dwellings and small buildings form the
omitted business. In numbers they are almost as many
thew "0 are inferior On this class Of business the
brokers are allowed 20 per cent This Is departure
necessary order 10 compete With the outside and bolt
ing companies. 1t is not improbable that an arrange
mcnt may be perfected allowing uniform rate OF 10 per
cent condition that tho brokers pledge themselves not
place any OF their business with the outside
It's profitable business and fully three ourths OF il Is in
the hands OF dozen In case they agree Is DIFF
iicult TO sec what the boilers VIII do"
Z" Is not this boycoltl
"Oh no. ii Is only expressing natural preference Tor
the person with whom you Will DO business
"Canno. the boiling companies underbd you on the
rated business T.
OH not at all They haven't tho capital They
haven't capital enough 10 AFFECT the matter
al all Large firms VIII not give them their business
Large insurers require To be amply satisfied OF The rccr
nv OF thet Insurance One OF tho important circun-
stances which encourage the association Is the recent
formation of the new Liberty Fire Insurance Company
whose stock OF II 900 900 Is all taken The stockholders
leading brokers and aOoat 200 others. all hrsclass re
spons.bs persons. When the Tariff Association was i
formed the brokers ts worst enemies ali It's most
reluctant friends Now, however, that its operations
ave proved successful and most OF them have themselves
become stockholders in company oy nnd IL IN bc their
especial interest protect the business ana 10 cease that
ruthless and general cutting OF their own hroats when
had the practice OF years until the Ian Assocm
ton. forbade IT." 80, ,r,., ...u,.,,.
and the Board Fire Insurance Brokers met yesterday
and virtually agreed the terms ol the new conDlna
ton The details that yet 10 be arranged are not suc
as arc likely TO prevent the accomplishment OF the new
plan The combination Is said u control nine tents OF
the business in this city, and It's cardinal rtlncc Is
that pre- ference shall be given 10 members until their line
OF risks shall be filed II applies 10 renewals as Wei as
TO new policies The business OF the outside companies
because they can secure only the overflow from the com
NAMES in the combination and rates will not suffer ma
teriay from concessions that they may make.